Core Viewpoint - CICC maintains the EPS forecast for Anta Sports at 4.82/5.47 HKD for 2025/26, with the current stock price corresponding to 19/17 times the 2025/26 P/E ratio, maintaining an outperform rating and target price of 120.92 HKD, indicating a 19% upside potential [1] Financial Performance - Anta Sports reported 1H25 revenue growth of 14% to 38.5 billion HKD, with net profit attributable to shareholders increasing by 14.5% to 7.03 billion HKD, outperforming expectations due to high growth from other brands and increased government subsidies [2] - The company declared an interim dividend of 1.37 HKD per share, corresponding to a payout ratio of approximately 50% [2] Brand Performance - The main brand, Anta, focused on the mass professional sports sector, achieving a revenue increase of 5.4% in 1H25, with the PG7 series selling over 2 million pairs [3] - FILA experienced an 8.6% revenue increase in 1H25, successfully identifying growth opportunities in niche categories like golf and tennis, with online sales growing by double digits [3] - Other brands saw a significant revenue increase of 61.1%, with Descente and KOLON performing well in their respective segments [3] Operational Efficiency - The company improved its operating profit margin by 0.6 percentage points to 26.3% in 1H25, attributed to effective cost control and increased government subsidies [4] - Advertising expenses decreased by 0.9 percentage points to 6.6%, while employee cost ratio increased by 0.2 percentage points to 15.7% due to higher retail staff compensation [4] Amer Performance - The integration of Amer turned a loss of 20 million HKD in 1H24 into a profit contribution of 430 million HKD in 1H25, highlighting the company's brand-building capabilities with continued high growth from Arc'teryx and strong performance from Salomon and Wilson [5] Future Trends - The company adjusted its full-year guidance for the Anta brand to mid-single-digit growth due to fluctuations in the retail environment, while increasing the growth guidance for other brands from 30% to 40% [6] - FILA's full-year growth guidance remains in the mid-single digits, and the company announced a joint venture with Korea's largest fashion platform MUSINSA in China and Hong Kong, holding a 40% stake, which is seen as a beneficial exploration of the integration of sports and fashion [6]